Discussions
How can negative operating working capital
21 days ago by charles.12charl
Lately, I’ve been digging into the financials of my small electronics company, and something caught my attention — our operating working capital turned negative last quarter. I wasn’t even sure what that meant at first, but now I’m starting to worry. On paper, we’re selling well and the numbers look solid, but cash has been super tight, and paying suppliers on time has gotten harder. I guess I’m just wondering — is negative operating working capital always a red flag? Or can it sometimes mean the business is just really efficient? Would love to hear if anyone else has dealt with this or understands it better.